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Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372 Exercise 70
Vertical Analysis of an Income Statement
A condensed income statement for Southwest Airlines and a partially completed vertical analysts are presented below.
Required:
1. Complete the vertical analysis by computing each line item ( a )-( f ) as a percentage of sales revenues. Round to the nearest whole percentage.
2. Does the percentage that you calculated in 1( a ) suggest that Southwest tried to increase its profit by cutting repairs and maintenance costs in 2010 compared to 2009
3. Refer to the percentages that you calculated in 1( c ) and ( f ). Is Southwest's net profit margin
A condensed income statement for Southwest Airlines and a partially completed vertical analysts are presented below.
Required:
1. Complete the vertical analysis by computing each line item ( a )-( f ) as a percentage of sales revenues. Round to the nearest whole percentage.
2. Does the percentage that you calculated in 1( a ) suggest that Southwest tried to increase its profit by cutting repairs and maintenance costs in 2010 compared to 2009
3. Refer to the percentages that you calculated in 1( c ) and ( f ). Is Southwest's net profit margin
Explanation
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Verified
In the vertical balance sheet all assets...
Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
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